Avicanna’s revenues jump, but company remains low on cash

Following the market close on Wednesday, Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF)  reported the financial results of the second quarter of 2024 as revenues rose 85%. Avicanna delivered revenue of C$6.1 million in the quarter versus last year’s C$3.3 million.

The company attributed the substantial increase to the acquisition of Medical Cannabis by Shoppers, and the introduction of its e-commerce platform MyMedi.ca. The platform contributed C$5.4 million in revenue in the current quarter.

Avicanna’s net loss grew to C$2.8 million versus last year’s net loss of C$1.2 million. Total expenses rose to C$4.6 million over last year’s C$3.3 million. The company is down to $488,211 in cash.

“We are happy to deliver another progressive quarter where we solidified our position in the medical cannabis space, enhanced relationships with the medical community, and stabilized our commercial operations in Canada. In addition, we are happy to report that during the second quarter, we saw the completion of two separate real world evidence trials focused on two of our drug candidates in line with our long-term growth strategy” stated Aras Azadian, CEO of Avicanna Inc.

Avucanna focuses on medical cannabis in the Canadian markets. It generated over C$10.7 million in revenue from MyMedi.ca during the first half of 2024. However, office and general expenses grew to C$1 million versus last year’s C$698,273. The company said it experienced a significant increase in these expenses due to additional costs related to the MyMedi.ca platform. The largest increase was in IT expenses, needed to operate the MyMedi platform.

Internationally, Avicanna said it was preparing for the manufacturing of its proprietary cosmetic and pharmaceutical finished products including Trunerox which obtained marketing authorization in Colombia earlier this year. The drug is expected to be commercialized in Colombia and into other Central American, Caribbean, and South American markets in early 2025.

Avicanna remains a going concern. At the end of the quarter, it had an accumulated deficit of C$101 million and a working capital deficit of C$2,994,200. The company said it must raise additional financing to continue operations, product development and clinical research.